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The Financial Crisis and the Geography of Wealth Transfers

  • Gourinchas, Pierre-Olivier
  • Rey, Hélène
  • Truempler, Kai Alexander

This paper studies the geography of wealth transfers during the 2008 global financial crisis. We construct valuation changes on bilateral external positions in equity, direct investment and portfolio debt at the height of the crisis to map who benefited and who lost on their external exposure. We find a very diverse set of fortunes governed by the structure of countries' external portfolios. In particular, we are able to relate the gains and losses on debt portfolios to the country's exposure to ABCP conduits and the extent of dollar shortage.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8567.

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Date of creation: Sep 2011
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Handle: RePEc:cpr:ceprdp:8567
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  1. Stephanie E. Curcuru & Tomas Dvorak & Francis E. Warnock, 2008. "Cross-Border Returns Differentials," NBER Working Papers 13768, National Bureau of Economic Research, Inc.
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